Car mileage insurance discount
- 1. Comparison shop
- 2. Bundle your policies
- 3. Raise your deductible
- 4. Get all discounts for which you qualify
- 5. Buy the right type of car
- 6. Avoid tickets and accidents
- 7. Don't carry unnecessary insurance coverage
- 8. Consider buying just the state-required minimum liability coverage
- Minimum car insurance rates by state
- Watch for pitfalls in coverage
- expanded Car insurance
- A little something extra
- Not got a Nectar card?
Everybody wants cheaper car insurance, but how do you actually find it?
Compare car insurance quotes from multiple companies to find the best coverage and price. Focusing solely on the lowest insurance rates is a mistake if you go without the coverage you need, so you should understand how to compare car insurance before making a decision. The whole point of insurance is to stand between you and financial disaster.
However, with a little research, you should be able to find cheaper auto insurance without sacrificing important coverage.
- Comparison shop
- Bundle your auto and home insurance policies
- Raise your deductible but keep it affordable
- Ask for every discount that applies to you
- Buy the right type of car
- Keep a clean driving record
- Don't buy unnecessary insurance coverage
- Consider buying just the state-required minimum liability coverage
1. Comparison shop
Sometimes, you'll get the best deal with your current car insurance company. But in many other cases, the road to the cheapest car insurance policy will take you elsewhere.
In general, the more you pay for car insurance, the bigger the difference between insurance companies' rates. Every company calculates its own price, and they often differ by hundreds or even thousands of dollars.
Comparison shopping can help you uncover cheap car insurance companies and auto insurance discounts. How often should you compare car insurance quotes to find the lowest premiums? Experts generally suggest looking around at least once a year -- but certainly at these times, when your rates are most likely to change dramatically:
- Purchasing a new or different car
- Combining cars on a multi-car insurance policy
- Adding or removing a driver
- Adding a teen driver
- Home purchase
- DUI or major violation - review DUI insurance
- Change in credit score
For more information, see "7 reasons your car insurance rates drop."
2. Bundle your policies
You already get cheaper rates if you are married or a homeowner because married people and homeowners tend to file fewer claims. But you can save even more by purchasing your home insurance and auto insurance policies from the same provider.
According to data gathered for Insurance.com by Quadrant Information Services, the nationwide average car insurance discount given for bundling home and auto insurance is 8 percent. By bundling renters and car insurance a discount also applies, with the nationwide average being around 5 percent. The nationwide average homeowners insurance discount given for bundling is 20 percent.
If you insure more than one car on your policy, you get a multi-car discount. Expect 10 to 25 percent savings off your collision, comprehensive and liability premiums.
3. Raise your deductible
Simply raising your deductible from $250 to $500 can lower the collision or comprehensive portion of your premium by about 20 percent, according to the Insurance Information Institute.
Remember, though, that a higher deductible means more money out of your pocket in the event of a claim. Cheap insurance can become expensive fast if you have to pay your deductible with a high-interest credit card. (See "How much can I save by raising deductibles?.")
4. Get all discounts for which you qualify
Is your daughter a straight-A student? You may qualify for cheaper car insurance by obtaining a good student discount. Does your car have anti-theft deterrents? Your insurer may give you a price break because the car is less vulnerable to theft.
Understand all the car insurance discounts you may qualify, so that you can get the cheapest insurance.
5. Buy the right type of car
If you're shopping for new wheels, your choice of automobile can play a big role in getting lower insurance rates. Cars that cost less to repair or replace generally receive lower premiums.
You'll also get better rates if your car has certain safety features. Insurance companies often give discounts for features such as anti-lock brakes, side airbags and automatic safety belts. Anti-collision technology is becoming popular in new vehicles; if your car is equipped with the new tech ask your agent if any discounts are available.
6. Avoid tickets and accidents
A poor driving history can easily disqualify you from getting the cheapest car insurance. Insurers will check your record to see if you present a high level of risk. Speeding tickets, accidents, drunk driving citations – all can drive your insurance rates higher.
Drive sensibly and cautiously and you'll be on the way to cheap car insurance by avoiding surcharges and receiving a good driver discount. (See "How much will a ticket affect my insurance rates?")
7. Don't carry unnecessary insurance coverage
If you have an old beater, reduce your car insurance costs by dropping comprehensive and collision coverage. When should you make this move toward cheaper auto insurance? Many experts say it's time to drop these coverages when the actual cash value you’d receive for your vehicle doesn’t justify the insurance expense. Insurance.com auto insurance coverage calculator>
Have an extra car in the household you can use if yours is in the shop due to an auto accident? If so, skip rental reimbursement coverage.
Also, don't pay extra for personal injury protection or medical payment insurance (if they aren’t required by your state) if your family already has a good health insurance plan.
8. Consider buying just the state-required minimum liability coverage
One way to get the cheapest car insurance available is to buy “bare bones” coverage, which typically is liability insurance at the lowest legal limits required by your state to legally drive a car. If you cause an accident, it pays for others’ property damage and medical bills and that’s it. It's important to remember that if you cause even a minor accident, minimum liability coverage probably won't be enough to pay for all the damage. That means you'll be paying out of your own pocket. Still, if you want to save money and your car is old or you don't drive much, it is one path to lower rates.
Liability limits are usually written like this: 30/60/25. In this example, using Texas minimum requirements, the numbers show coverage that would pay:
- medical expenses of up to $30,000 per person
- medical expenses up to $60,000 per accident
- up to $25,000 for property damage
Here are average annual rates for the cheapest car insurance coverage in every state, according to a rate analysis by Quadrant Information Systems for Insurance.com.
Minimum car insurance rates by state
|State||Minimum car insurance requirements||Minimum car insurance average rate|
Methodology: The table shows the average annual rate of 10 ZIP codes in the state for minimum coverage from the following carriers, in no particular order: Progressive, Allstate, State Farm, Nationwide, GEICO and Farmers. In some states, uninsured motorist coverage and/or personal injury protection coverage is mandatory in addition to liability. For those states, these coverages are included in our average rate shown in the chart, though we list just the state minimum levels for liability. Data was provided for Insurance.com by Quadrant Information Services. New Hampshire doesn’t require drivers to have car insurance, but most drivers do, and we’ve listed what is mandated if you choose to carry coverage.
Watch for pitfalls in coverage
You can only go so far with discounts and comparison shopping. Some carriers can provide you a lower rate, but they do it by limiting coverage in ways you might regret in the event of an accident.
For example, some companies limit coverage of permissive drivers or don't cover them at all. That is, if you lend your car to a friend who has an accident, your liability limits might be reduced or the claim might not be honored. The same discount policies might not extend to a rental car, as standard policies do.
expanded Car insurance
A little something extra
If you're taking out car insurance with us for the first time, we'll help you make your budget go that bit further:
- Save £3.50 on fuel a month for one year*
- Double Nectar points on your Sainsbury's shopping and fuel for up to two years – just quote and buy direct from us.†
- Guaranteed discount for Nectar card holders‡
See our offers page for more details.
For the cover you need – boot to bonnet
We understand that everyone's lives are different and you're not just driving from A to B, you might be driving from athletics to ballet. Which is why we listened to you, our Sainsbury's shoppers, and shaped our car insurance around your needs.
You can buy our Comprehensive or Third Party, Fire and Theft cover, or to get more mileage add some of our optional extras for an additional cost – just choose what's right for you. If you need some help then we have lots of guides you can call upon, from a guide to car insurance excesses to what to do if you have an accident.
Here are just some of the things you could get when you buy a policy:
- Courtesy Car – as standard, with Comprehensive Cover, you'll get a small hatchback when you make a claim and your car is being repaired by one of your insurer's nominated repairers. If that's not big enough, you can upgrade to get a car that is a similar size to yours by adding our enhanced Guaranteed Courtesy Car for an extra cost.
- Windscreen Cover – comes as standard with our Comprehensive Cover or you can add Windscreen Cover to our Third Party, Fire and Theft cover for an extra cost.
- No Claims Discount – get a discount on your insurance for every year you are claim free. Built up 4+ years without claiming? You can add our No Claims Discount Protection for an extra cost.
- European cover – take your car insurance on holiday with you and enjoy the same insurance benefits you do in the UK. Want to take your breakdown cover too? You can add RAC European Breakdown cover for an additional cost.
Not got a Nectar card?
It's free and you can get a Nectar card number straight away at nectar.com, allowing you to get our extra perks. Just enter your Nectar card number when you're asked to. With your Nectar card you can also collect and spend Nectar points at Sainsbury's and with lots of other brands.
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Terms and conditions
*Money off fuel each month for a whole year. (12 x £3.50 dated coupons to spend on fuel). This introductory offer is available to customers who buy a new Sainsbury's Bank Car Insurance policy. To get this offer, visit the Sainsbury's Bank website (sainsburysbank.co.uk/car) or phone us to get a quote and buy your car insurance policy. Offer is 12 x £3.50 coupons with varying validity dates over a 12 month period. Coupons are only valid for spend on fuel within manned Sainsbury's Petrol Stations until their expiry date, which can be found on each coupon. Coupons cannot be used in Livingston, Hawick and Whitehouse Farm Petrol Stations or in any Sainsbury's supermarkets. All coupons will be issued up to 60 days after the policy start date unless your policy is cancelled within this period. Duplicate coupons will not be issued, for example if they are lost or damaged. We will send the coupons to the address you provided when you took out your policy. Sainsbury's Bank reserves the right to alter, cancel or withdraw the offer at any time and without prior notice. No cash alternative available.
†Double Nectar points. 1. Offer only available to customers who buy a new Sainsbury's Bank Car Insurance policy direct from Sainsbury's Bank 2. You must continue to pay policy premiums for two years to continue collecting double points. 3. If the policy is cancelled, double points will stop from the cancellation date. 4. Only the first Sainsbury's Bank Car Insurance policy registered against a Nectar account will qualify for double points. 5. You must give us your Nectar card number to be able to collect double Nectar points. If you give us your Nectar card number after you take out an insurance policy, we cannot back date double Nectar points. Points will start to be calculated from the date you give us your Nectar card number. 6. You collect base points when you shop as normal. Then, by the 10th of each month, we'll give you a bonus equal to the total of the base points you collected the previous month while you held the policy, up to a maximum of 1,250 points. We'll do this for up to 24 months from the start date of your policy. We won't double any bonus points, any points from other offers, or points from Sainsbury's Energy, Telecoms, Bank and all other Sainsbury's services. 7. The monthly bonus will only be calculated on, and credited to the Nectar card you give us. The same Nectar card must also be used each time you make a Sainsbury's purchase. 8. Nectar points are awarded to you by Sainsbury's Supermarkets Ltd. The Nectar loyalty programme is run by Aimia Coalition Loyalty UK Ltd. The Nectar Collector Rules detail how to collect and use points. You can find these in the Nectar registration pack and at nectar.com 9. Sainsbury's Bank reserves the right to alter, cancel or withdraw the offer without prior notice. 10. No cash alternative available.
‡Guaranteed discount for Nectar card holders: The discount is based on information related to you and the transactions you've made with Sainsbury's supermarkets and Sainsbury's Bank using your Nectar card. For more information go to sainsburysbank.co.uk/nectar
Due to the litigious nature of our society and the rising cost of vehicles, car insurance rates are hefty throughout the nation. The bad news is that insurance isn't likely to lessen in price any time soon. The good news is that there are things that you can do to minimize increases and/or lessen the burden on your wallet. Let's take a look at 12 tips you can employ to save your driving dollars.
1. Insure Multiple Cars/Drivers
If you obtain a quote from an auto insurance company to insure a single vehicle, you might end up obtaining a higher quote (per vehicle) than if you inquired about insuring several drivers and/or vehicles with that company. This is because insurance companies will offer what amounts to a bulk rate because they want your business, and under some circumstances, they are willing to give you a deal if it means you'll bring in more of it.
To obtain a discount, ask your agent/insurance company to see if you qualify and get a quote. Generally speaking, multiple drivers must live at the same residence and be related by blood or by marriage. Two non-related people may also be able to obtain a discount; however, they usually must jointly own the vehicle.
Incidentally, some companies may also provide an auto insurance discount if you maintain other policies with the firm (ex. homeowner's insurance). Check with your agent/insurance company to see if such discounts are available and applicable.
2. Keep A Clean Record
It should go without saying that the more accidents or moving violations an individual has, the more he or she will tend to pay in terms of annual premiums. For those unaware, points are typically assessed to a driver for moving violations. Generally speaking, more points can lead to higher insurance premiums (all else being equal).
3. Take A Defensive Driving Course
Sometimes insurance companies will provide a discount for those that complete an approved defensive driving course. Also, sometimes a driver can reduce the number of points he or she has on his or her license by taking a defensive driving, accident prevention or other course.
Make sure to directly ask your agent/insurance company about this discount before signing up for a class. After all, it's important that the effort being expended and the cost of the course will translate into a big enough insurance savings. It's also important that the driver sign up for an accredited course.
4. Shop Around
If your policy has just been renewed and the annual premium has gone up markedly, consider shopping around and obtaining quotes from competing companies. Also, every year or two it probably makes sense to obtain quotes from other companies just in case there is a lower rate out there.
However, remember that cheap doesn't always mean good and going with the lower-priced company isn't always the wisest decision. That's because the insurer's credit worthiness should also be considered. After all, what good is a policy if the company doesn't have the wherewithal to pay an insurance claim? To run a check on a particular insurer, consider checking out a site that rates the financial strength of insurance companies (such as A.M. Best). Financial strength of your insurance company is importnant but, what your contract covers is also very important so, make sure you understand your insurnace contract.
5. Take Mass Transit
When you sign up for insurance, the company will generally issue you a questionnaire. Among the questions it asks might be the number of miles you drive the insured automobile per year.
If you use your vehicle to commute three hours to work every day, you will generally pay more in insurance premiums than someone who only drives one mile a day. If possible, try to use mass transit to rack up fewer miles, keeping in mind that you will usually have to decrease your mileage significantly before incurring a discount. Ask your agent/insurance company about the company's different mileage thresholds so your efforts won't be wasted.
6. Select Your Vehicle Carefully
Buying a huge SUV may sound exciting, but insuring a 5,000-pound, top-of-the-line vehicle can be more expensive than insuring a small (but safe) lower-cost commuting car. Also, older cars are often cheaper to insure than their more modern counterparts. Again, speak with your agent/insurance company to find out the exact rates to insure the different vehicles you're considering before making a purchase. To learn more about choosing a cost-effective vehicle, see Wheels Of A Future Fortune.
7. Consider Raising Your Deductibles
When selecting car insurance, you can typically choose a deductible, or the amount of money you would have to lay out before insurance picks up the tab in the event of an accident, theft or other type of damage to the vehicle. Depending on the policy, deductibles typically range from $250 to $1,000. The catch is that, generally speaking, the lower the deductible, the higher the annual premium. Conversely, the higher the deductible is, the lower the premium. Ask your agent/insurance company how your premium might be affected if you raised your deductible. In some cases, it may make the annual premium better by several percent and put some money back in your pocket; other times, the savings may be minimal.
8. Improve Your Credit Rating
A driver's record is obviously a big factor in determining auto insurance costs. After all, it makes sense that a driver who has been in lots of accidents could cost the insurance company lots of money. However, folks are sometimes surprised to find that insurance companies may also consider credit ratings when determining insurance premiums.
Why is a person's credit rating considered? The theory is that individuals who keep their financial situations in ship-shape condition will tend to be more careful when it comes to driving. Regardless of whether that's true, be aware that your credit rating can be a factor in figuring insurance premiums and do your utmost to keep your credit rating high.
9. Pay Attention to Where You Live
It's unlikely that you will move to a different location (i.e., state) simply because it has lower car insurance rates. However, when planning a move, the potential change in your car insurance rate is something that you will want to factor into your budget.
10. Drop Unnecessary Coverage
Dropping certain types of coverage can be a slippery slope. After all, nobody can predict if or when an accident will occur. However, if an individual is driving an extremely old automobile that's on its last legs, it may make sense (depending on the cost, the individual's driving record and other factors) to drop collision coverage. The reason for this is that were the vehicle to be involved in an accident, the insurance company would likely total the car. If the value of the car is only $1,000 and the collision coverage costs $500 per year, it may not make sense to buy it.
In any case, before making any such decision, consider speaking with your financial advisor and your agent/insurance company. Remember, every situation is different and the decision is up to you.
11. Install Anti-Theft Devices
Individuals have the potential to lower their annual premiums, sometimes by as much as several percent, if they install anti-theft devices. Your agent or insurance company should be able to tell you specifically which devices, when installed, can lower premiums. Car alarms and LoJacks are two types of devices that you might want to inquire about. If your primary motivation for installing an anti-theft device is to lower your insurance premium, make sure to consider whether the cost of adding the device will result in a significant enough savings to be worth the trouble and expense.
12. Question Your Agent
It's important to note that there may be other potential cost savings to be had in addition to the ones described in this article. In fact, that's why it often makes sense for you to speak directly with your agent or a representative of the insurance company to ask if there are any special discounts that the company offers for individuals such as military personnel or employees of a certain company. The insurance company may also offer a "good student" rate or some other special savings. You never know what sort of discount pricing might be available for your circumstances, but unless you ask, you probably won't be able to take advantage of it.
The Bottom Line
The price of auto insurance is likely to continue to rise in the future. However, there are many things you can do to reduce the sting, and hopefully these 12 tips will have you driving in the right direction.